QDROs

image of Qualified Domestic Relations Order at the pension department

Retirement benefits may be the largest asset a couple has and may even surpass a person’s home in value and importance.

Thus the issue of dividing a 401k or pension plan in a divorce is complex and confusing.  In order to divide a 401k account or pension account between an employee and their former spouse, a judge has to sign a Qualified Domestic Relations Order (QDRO).

Are you protected?

Do you have ticking time bombs in your files?  Many QDROs are not written correctly and you as the Plan Administrator must accept or reject a QDRO. If you accept a QDRO that shouldn’t have been accepted or reject it even though it shouldn’t have been, you can be held personally liable.
Even if you have a financial institution or a third party that handles all of this for you, you are still held responsible.

Do you have a QDRO Manual? All plans are supposed to have in writing a QDRO Manual. Does your company have one? Is it a simple two page document? Does it address what happens in the case of the death of the employee or the former spouse? Does it address what happens if the former spouse wants 50% of the account as of a specific date, but you don’t have the old records anymore?

The Pension Department can help remove these hassles from your 401k or pension plan.

Having the answer to these questions could go a long way to avoiding a lawsuit by the employee or the former spouse. But more importantly, with a properly drafted QDRO Manual, your company could save time and money every time an employee gets divorced.

The Pension Department, Inc.’s QDRO Manual is a comprehensive manual that answers all of these questions and more. To read more about our QDRO Manual read our aticle on Should You Have a QDRO Manual.
To purchase The Pension Department, Inc.’s QDRO Manual use our
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